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Apr 21, 2008 at 07:31 AM

Service tax Receivable and payable adjustment automatically


Dear GURU,

Service Tax Receivable & Payable – The Client wants to have a Service Tax Control Account that would be automatically populated for the particular bill / Invoice on the day of Vendor Payment and Customer Receipt.

a. Example –

While Billing Entry - 31.01.2008 (SD)

Customer A/c 20000

To Service Tax Payable 500

To Rental Income A/c 19500


Service Income

(Provision Entry only)


Security Charges 4750

Service Tax Receivable 250

To Vendor A/c 4950

To TDs Payable A/c 50

(Provision Entry Only)

On Incoming Payments from Customers (05.03.2008) (FI)

Bank A/c 19500

TDs Receivable 500

To Customer A/c 20000

(Required Automatically (or) Control) – 05.03.2008

Service Tax Payable 500

To Service Tax Control A/c 500

On Outgoing Payments to Vendors (10.02.2008) (FI)

Vendor A/C 4950

To Bank A/c 4950

(Required Automatically (or) Control) – 10.02.2008

Service Tax control A/C 250

To Service Tax Receivable 250

Please Note: The entries in Red Font are required to be passed automatically

pls suggest